Portfolio Composition at the end of June, 2014

I am trying to maintain the discipline of disclosing my portfolio over the weekend after expiry in every month.

Notable purchases during the month include a significant increase in my holdings in IDFC and Oberoi Realty, and an increase in my holdings in Idea Cellular and an initial position in Tata Global Beverages. I also bought a reasonable amount of Sabero Organics as a special situations play. Amongst small caps, I created small positions in Morganite Crucible and Mazda Engineering. I trimmed my holdings in JP Infra and in Alkyl Amines.

I have too diversified a portfolio. Over a period, it will only became like the Nifty Junior. I am therefore trying to increase the concentration in my portfolio, and for the moment, two stocks, IDFC and Oberoi Realty are in my focus. I intend to increase my holdings further. I will give an investment thesis on both next week.

I am also increasing my exposure to Idea Cellular, though at a slower clip than the above two. The reason is simple, telecom stocks have got back pricing power, and the eminent entry of Reliance Jio, to my mind, is an overblown fear. Reliance has not demonstrated that when it comes to engaging the consumer that it is better than competitors. This is true for its previous telecom foray, as it is true for its retail foray. I have little doubt that they will be a serious player in the telecom space, but existing telecom players are not going to roll over and die. Idea’s balance sheet is the best amongst Bharti, RCom and Idea, and it is executing its plan well. This can be a FCF business of high proportions.

Sabero Organics was bought mainly from the point of view of merger with Coromandel International. The merger should not happen within a month or so, and buying Sabero today means buying Coromandel at a 7% or so discount.

Stock

Latest Price

Inv. Price

Overall Gain %

% of Portfolio

IDFC

128.35

112.35

14.24

4.05%

ILandFS

23.4

13.81

69.46

3.50%

Selan Explore

594.5

317.72

87.11

3.46%

Oberoi Realty

259.1

204.00

27.01

3.36%

Larsen

1667.3

949.93

75.52

2.48%

Cummins

639.3

406.70

57.19

2.47%

IRB Infra

224.6

81.35

176.09

2.44%

Balkrishna Ind

735.9

232.34

216.74

2.43%

Sesa Sterlite

289.35

150.99

91.63

2.32%

Mayur Uniquoter

374.5

111.03

237.29

2.25%

Clariant

861.05

617.20

39.51

2.12%

NMDC

178.95

121.65

47.1

1.96%

Kaveri Seed

721.2

296.64

143.12

1.96%

EID Parry

209.4

141.47

48.02

1.93%

Bharat Forge

608.25

272.25

123.42

1.87%

Hind Zinc

163.9

121.00

35.45

1.76%

Ajanta Pharma

1522.6

1007.73

51.09

1.65%

Sun Pharma Adv

160.25

121.93

31.43

1.61%

MPS

345.45

128.66

168.49

1.59%

eClerx Services

1159.8

866.27

33.88

1.56%

Indian Hotels

102.3

53.51

91.16

1.56%

Tata Inv Corp

547.15

404.99

35.1

1.55%

NTPC

152.25

130.22

16.92

1.55%

Sobha Developer

511.55

288.64

77.23

1.51%

Munjal Auto Ind

78.5

33.99

130.93

1.48%

Oriental Carbon

269.9

113.21

138.42

1.46%

Syndicate Bank

157.85

69.59

126.83

1.29%

ITC

319.75

304.43

5.03

1.28%

PI Industries

329

144.63

127.48

1.28%

ILandFS Trans

206.8

134.39

53.88

1.28%

Reliance

1012.1

756.12

33.85

1.27%

PTC India Fin

31.55

13.93

126.5

1.27%

ICICI Bank

1384.65

933.81

48.28

1.26%

Tata Steel

518.9

274.05

89.35

1.23%

Grindwell Norto

408.25

231.16

76.61

1.20%

Muthoot Cap

156.75

94.02

66.72

1.20%

Bajaj Electric

336.5

209.83

60.37

1.19%

TCS

2399.55

1771.20

35.48

1.19%

VST Tillers

1766.55

421.86

318.76

1.17%

Banco Products

115.4

56.16

105.48

1.09%

Poly Medicure

503.35

278.36

80.83

1.08%

RS Software

276.4

206.52

33.84

1.07%

Sasken Comm

220.45

180.30

22.27

1.07%

This constitutes 79% of my total portfolio. I am disclosing those stocks which constitute more than 1% of my portfolio. IDFC has gone up from 3.4% to 4.05%, even without any price increase. Oberoi Realty has gone up from 2.4% to 3.4%. I fully intend to have both of these at 10% within the next 2 months.